Media statement Friday, June 29th 2012

KiwiSaver turning five marks milestones for employees and employers

KiwiSaver's fifth birthday on Sunday 1 July 2012 marks a milestone for both savers and employers says David Lowe, Employment Services Manager for the Employers & Manufacturers Association.

"Employees who opened a KiwiSaver account on day one and are now 65 years old can withdraw their money," Mr Lowe said.

"Even though they may be at the age of eligibility for National Superannuation they still couldn't withdraw their KiwiSaver money until they had been in the scheme for five years.

"For employers, KiwiSaver contributions are no longer compulsory after an employee has been in the scheme for five years and is 65 years or older.

"Employers can choose to continue paying employer contributions to these staff, or discontinue them for employees who are 65 and have been in KiwiSaver for five years.

"KiwiSaver is a successful policy. We congratulate Labour for introducing it and National for continuing it.

"Employers are now more or less over its inevitable teething issues. KiwiSaver is fairly much a settled and accepted part of life.

"To really complete the job, politicians need to do their bit by not fiddling with it, for example they should leave it out of the 2014 election wrangling."
ends